Pitney Bowes 2009 Annual Report Download - page 108

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PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share data)
90
Other changes in plan assets and benefit obligations for nonpension postretirement benefit plans recognized in other comprehensive
income are as follows:
2009 2008
Net actuarial loss (gain) $ 21,367 $ 15,067
Prior service cost (credit) - -
Amortization of net actuarial (loss) gain (4,092) (3,257)
Amortization of prior service (cost) credit 2,475 2,478
Adjustment for actual Medicare Part D Premium 1,005 1,191
Total recognized in other comprehensive income $ 20,755 $ 15,479
Weighted average assumptions used to determine net periodic costs during the years:
2009 2008 2007
Discount rate – U.S. 5.95% 5.90% 5.85%
Discount rate – Canada 6.60% 5.25% 5.00%
The estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2010 are as follows:
Net actuarial loss $ 5,894
Prior service credit (2,513)
Total $ 3,381
The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligations for the U.S. plan was
7.50% for 2009 and 8.00% for 2008. The assumed health care trend rate is 7.50% for 2010 and we assume it will gradually decline to
5.00% by the year 2015 and remain at that level thereafter.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1% change in the
assumed health care cost trend rates would have the following effects:
1% Increase 1% Decrease
Effect on total of service and interest cost components $ 590 $ (507)
Effect on postretirement benefit obligations $ 8,693 $ (7,584)
Estimated Future Benefit Payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Pension
Benefits
For the year ending 12/31/10 $ 133,052
For the year ending 12/31/11 123,634
For the year ending 12/31/12 131,716
For the year ending 12/31/13 134,787
For the year ending 12/31/14 139,896
For the years ending 12/31/15-12/31/19 723,097
$ 1,386,182